I'd like to preface what will be a rather desperate and negative post with some positivity.
Yesterday marked 1 year of being on this forum. I had planned to make a big post about how my life has changed since joining the Fastlane community, and I will still do that - because my life HAS completely transformed for the better...
About 10 months ago I posted this thread about how F*cked my family was. My mom had been in bed on and off for years in deep depression. My little brother had been abusing drugs and essentially making our lives hell.
The single greatest pride in my life is that I stuck with them and they are now doing much better. Learning how to actually be of service to them has been the single greatest lesson of my life and it has truly been a case of your greatest obstacles are your greatest opportunities for growth. I don't want to go into too many details here, because I want to post more about it later and this post isn't about that. I just wanted to show that not everything is bad
Also, I'll be launching my first product (not my first business attempt) that I have poured my heart and soul into next week... Just one year after starting this journey. How great is that?
---------------------------------------------------
Anyway, here comes the negative side of things. My house - my Mom's house - will be going into (pre) foreclosure in three weeks and I want to prevent her from losing everything.
If you are the type of person who is into seeing things that are kind of sad - then you should check out this post that I left in February this year - thinking that we were about to make 800k in capital gains
Needless to say, this didn't happen and things have gotten increasingly desperate.
Her house is worth $2 million and houses in that price range don't move quickly. Some terrible financial decisions were made in the form of hard money loans where she was stuck paying 10-12k a month on the house. Now, we are at the end of her loan and she owes $1.15mil.
We also have moved the house's price down several times because we knew we really needed to sell it before the end of the 12 months (Dec 5th). I believe that this may have damaged the perception of the house.
There is so much information and context that I want to provide right now but I fear that I won't be able to do that without making this post too convoluted - so I am just going to stick to
the basics:
a) My mom owes $1.15mil on the house and because we haven't paid the loan it is costing $600 extra every day that we don't pay it.
b) If we get foreclosed on there is an extra charge of $150,000
c) The house is now priced at $1,699,000. (started at 2 million)
Our options (from what I understand):
1) We get the house refinanced through a hard money loan (my mom's credit is completely F*cked). It will cost us $100-150k out of closing of the house... and obviously we aren't guaranteed to sell it before the loan closes - putting us back in this situation but even worse.
2) Drop the price aggressively (to around $1.4mil) and try to sell in the very short window that we have.
- The issue with #1 is that we are stuck in this house (which has become extremely oppressive) even longer... and we aren't guaranteed to make it out of this with a sale. We could end up in even deeper waters!
- The issue with #2 is that even if we drop the house's price aggressively we aren't guaranteed to sell it within that period - and from my understanding dropping the price of the house will make the LTV way too high for someone to refinance us. This is assuming that they will look at the current price of the house to assess whether or not the loan is worth it for them. Can anyone contradict this?
If we drop and sell it for $1.4 in this period of time then that will mean that selling it refinanced for $1.5-1.6 would make it worth our effort to refinance it. I think there is a fair bit of certainty that we could sell for that price, but of course... you never know.
What I really want to know is how to find people who will buy this house at $1.4mil quickly - without dropping the marketed price of the house (which would ruin our chance of refinancing as a backup). Are we just going to have to go balls to the wall on one of these options?
If I had to pick I would say sell it fast and drop the price because I want to get out of here but I feel that may be even more risky than doing a refinance. To me it would be optimal to leave the public listing at $1.699 for the sake of re-financing, but still somehow bring investor's attention to this house at its current price point (meaning they know we will sell for much less than it is worth).
-----------------------------------------------------------
Just to add a little bit of oxygen to the fire I'll add that I have given all of the money that I've made and my college funds to try and help this situation. I now recognize that I went way too far in trying to help, but I loved my mom too much and didn't have the wisdom at the time to say no.
I now understand where the line needs to be drawn. You must insure that you are taken care of so that you can best be of service to others. These lessons are invaluable to me and I honestly wouldn't take any of my decisions back. If you wish to judge me as being an idiot for doing this - then that is okay - the main thing is that I need to make this happen so that my mom can land on her feet and maybe I can get some of my money back.
--------------------------------------------------------------
I appreciate your time in reading this. Sorry if some areas aren't clear enough. I will go back and fix things up when I get the chance.
Well, I guess my final question is -
Anybody got an idea of WTF I should do?
Yesterday marked 1 year of being on this forum. I had planned to make a big post about how my life has changed since joining the Fastlane community, and I will still do that - because my life HAS completely transformed for the better...
About 10 months ago I posted this thread about how F*cked my family was. My mom had been in bed on and off for years in deep depression. My little brother had been abusing drugs and essentially making our lives hell.
The single greatest pride in my life is that I stuck with them and they are now doing much better. Learning how to actually be of service to them has been the single greatest lesson of my life and it has truly been a case of your greatest obstacles are your greatest opportunities for growth. I don't want to go into too many details here, because I want to post more about it later and this post isn't about that. I just wanted to show that not everything is bad
Also, I'll be launching my first product (not my first business attempt) that I have poured my heart and soul into next week... Just one year after starting this journey. How great is that?
---------------------------------------------------
Anyway, here comes the negative side of things. My house - my Mom's house - will be going into (pre) foreclosure in three weeks and I want to prevent her from losing everything.
If you are the type of person who is into seeing things that are kind of sad - then you should check out this post that I left in February this year - thinking that we were about to make 800k in capital gains
Needless to say, this didn't happen and things have gotten increasingly desperate.
Her house is worth $2 million and houses in that price range don't move quickly. Some terrible financial decisions were made in the form of hard money loans where she was stuck paying 10-12k a month on the house. Now, we are at the end of her loan and she owes $1.15mil.
We also have moved the house's price down several times because we knew we really needed to sell it before the end of the 12 months (Dec 5th). I believe that this may have damaged the perception of the house.
There is so much information and context that I want to provide right now but I fear that I won't be able to do that without making this post too convoluted - so I am just going to stick to
the basics:
a) My mom owes $1.15mil on the house and because we haven't paid the loan it is costing $600 extra every day that we don't pay it.
b) If we get foreclosed on there is an extra charge of $150,000
c) The house is now priced at $1,699,000. (started at 2 million)
Our options (from what I understand):
1) We get the house refinanced through a hard money loan (my mom's credit is completely F*cked). It will cost us $100-150k out of closing of the house... and obviously we aren't guaranteed to sell it before the loan closes - putting us back in this situation but even worse.
2) Drop the price aggressively (to around $1.4mil) and try to sell in the very short window that we have.
- The issue with #1 is that we are stuck in this house (which has become extremely oppressive) even longer... and we aren't guaranteed to make it out of this with a sale. We could end up in even deeper waters!
- The issue with #2 is that even if we drop the house's price aggressively we aren't guaranteed to sell it within that period - and from my understanding dropping the price of the house will make the LTV way too high for someone to refinance us. This is assuming that they will look at the current price of the house to assess whether or not the loan is worth it for them. Can anyone contradict this?
If we drop and sell it for $1.4 in this period of time then that will mean that selling it refinanced for $1.5-1.6 would make it worth our effort to refinance it. I think there is a fair bit of certainty that we could sell for that price, but of course... you never know.
What I really want to know is how to find people who will buy this house at $1.4mil quickly - without dropping the marketed price of the house (which would ruin our chance of refinancing as a backup). Are we just going to have to go balls to the wall on one of these options?
If I had to pick I would say sell it fast and drop the price because I want to get out of here but I feel that may be even more risky than doing a refinance. To me it would be optimal to leave the public listing at $1.699 for the sake of re-financing, but still somehow bring investor's attention to this house at its current price point (meaning they know we will sell for much less than it is worth).
-----------------------------------------------------------
Just to add a little bit of oxygen to the fire I'll add that I have given all of the money that I've made and my college funds to try and help this situation. I now recognize that I went way too far in trying to help, but I loved my mom too much and didn't have the wisdom at the time to say no.
I now understand where the line needs to be drawn. You must insure that you are taken care of so that you can best be of service to others. These lessons are invaluable to me and I honestly wouldn't take any of my decisions back. If you wish to judge me as being an idiot for doing this - then that is okay - the main thing is that I need to make this happen so that my mom can land on her feet and maybe I can get some of my money back.
--------------------------------------------------------------
I appreciate your time in reading this. Sorry if some areas aren't clear enough. I will go back and fix things up when I get the chance.
Well, I guess my final question is -
Anybody got an idea of WTF I should do?
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